Economic Trends and Issues in Veterinary Medicine

[Pages:23]Economic Trends and Issues in Veterinary Medicine

?

Dr. Karen E. Felsted, CPA, MS, DVM, CVPM Felsted Veterinary Consultants, Inc.

1

Data Needs

?

Much data available for

Companion animal private practice arena Compensation for all groups

Other data less available AVMA and allied groups must work together

to identify the data needed, how to get it and how to make it accessible

Before the Recession

?

Veterinary care usage metrics declining in spite of increased pet numbers

Transactions per FTE veterinarian Median new clients per FTE veterinarian Median active clients per FTE veterinarian Total veterinary visits Veterinarian visits per pet % of households with pets who visited the veterinarian

Average practice revenue up 7-13% Veterinarian compensation/take home earnings up

AAHA Financial & Productivity Pulsepoints/JAVMA 8/1/08/AVMA US Pet Ownership &

Demographics Sourcebook/DVM State of Profession Survey 2009/AAHA Compensation &

Benefits/2011 AVMA Report on Veterinary Compensation/Benchmarks-Well Managed

3

Practices

During/Post Recession

?

Continued decline in visits

Decline in revenue growth/absolute revenue Softening in veterinarian compensation/earnings

2011

Estimated 1-3% revenue growth in companion animal practices

Much variability in impact of recession on practices

Visits still declining in practices

Bayer Veterinary Care Usage Study/AAHA Financial & Productivity Pulsepoints/AAHA

Compensation & Benefits/2011 AVMA Report on Veterinary Compensation/Benchmarks-Well

Managed Practices/AAHA State of the Industry 2010 Review/Burzenski & Co/Gatto

4

McFerson CPAs Calif Veterinary Economic Report

Patient Visits in Serious

Decline...

?

34% Net Increase

Net 17% report a decline (Net Decrease ? Net Increase)

51% Net Decrease

8%

26%

14%

35%

16%

Increased 10% or more Increased 1-9% Stayed the same Decreased 1-9% Decreased 10% or more Don't know

Bayer Veterinary Care Usage Study

5

?2011 Bayer HealthCare

Veterinarian Supply Growing Faster Than Pet Owner Demand

?

Comp. Animal Veterinarians Comp. Animal Practices Dogs Cats

1996/1997 2006/2007 %Change

30,255 44,785

+48

20,170 22,393

+11

52,922 72,114

+36

59,094 81,721

+38

AVMA

6

Workforce Issues

?

Lots of opinions about this--need serious analysis and data in all arenas

Public health Research Food supply/safety Private practice--FA, Equine, CA

Illegal practice a related issue

Cost of Care Has

Increased

?

? Significant fee increases

? More sophisticated care available

? Referral hospitals

? Emergency hospitals

? Pets are living longer

? More routine care

? More likely to develop serious and/or chronic

diseases

8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download